Marcellus Shale Revenue Predicted to Decline

The state’s Independent Fiscal Office recently released a report that shows a considerable decline in total revenue collected from the impact fee Marcellus Shale drillers pay annually.

In 2014, total revenue generated was $223.4 million. The Independent Fiscal Office projects 2015’s revenue to be between $15 million and $34 million less than 2014’s total. This decline in revenue is attributed to the lower prices on natural gas and the subsequent drilling of fewer wells.

Pennsylvania is the nation’s second largest natural gas producing state, but is the only fossil fuel producing state that does not have a severance tax on natural gas.

The revenue generated from the impact fee goes to fund projects in the Marcellus Shale regions including transportation, housing and county conservation and makes up less than one percent of the Commonwealth’s annual state collections.